The announcement of the annual budget — one of the most closely watched political events in Singapore — is expected to contain
fewer handouts than 2025, when Singapore was headed into an election and was celebrating its 60th anniversary. Wong’s People’s Action Party, which has run the country since independence, subsequently won a bigger share of the vote.
Singapore may eye narrower surplus in upcoming Budget (CHART: Bloomberg)
(Singapore Ministry of Finance)More
Wong is also expected to provide an update on the
Economic Strategy Review, which launched last year to refresh which industries the country will focus on.
The government will likely land on a budget surplus of 0.6% of gross domestic product for the 2026 fiscal year, which starts in April, according to the median estimate in a Bloomberg survey. It’s the first in a new five-year parliamentary term, within which the government is required by law to balance the budget.
“The government has historically been prudent in the first year, reserving some dry powder in the event of unexpected shocks or a downturn in later years,” Maybank Securities Pte Ltd.’s Chua Hak Bin and Brian Lee said in a report.